The Status and Role of Price Discovery in Industry Strategic Positioning Under the Framework of Global Landscape Reshaping [SMM Aluminum Industry Conference]

On April 16, at the AICE 2025 SMM (20th) Aluminum Industry Conference and Aluminum Industry Expo—Main Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Service Co., Ltd., price discovery economist Shiqi Qi shared the status and role of price discovery in the strategic positioning of the industry under the framework of global restructuring. Some excerpts from his speech are as follows:

Regarding Price Discovery
First, he elaborated on price discovery. As an important term in modern economics, price discovery was defined in 1997 as: "Price discovery refers to the process by which buyers and sellers agree on the price of a commodity in terms of quality and quantity at a given time and place, involving market structure, market behavior, market information, futures markets, and risk management." Western economics believes that the supply and demand process, due to the game between buyers and sellers, forms an equilibrium price through bidding.

The 2020 Nobel Prize in Economics was awarded to the book "The Discovery of Price," authored by Paul R. Milgrom and Robert B. Wilson.

The discovery of price mainly refers to the discovery of future prices. Because the discovery of prices that have already occurred or are occurring does not play a key role in the analysis of investors, enterprises, industries, or the global economic landscape.

Western economics' research on future prices mainly involves incorporating information from company financial reports, policy changes, and insider information into prices through trading behavior. Simply put, they focus on trading volume, price fluctuations, liquidity, and the number of participants in investments, using these as important information resources for price discovery, and primarily employing traditional statistics in calculations.

In recent years, new-type technological means such as big data and artificial intelligence have also been applied to price discovery. Artificial intelligence and big data mainly focus on short-term speculative behaviors regarding future price fluctuations, and are still in a blind spot for judging the major cycles of industries.

The price of commodities is related to the following factors:
First, consider the Earth as a square module, and divide it into grids of equal spacing (e.g., 10m×10m, 100m×100m). Establish a coordinate system on it, assigning unique coordinates to each grid (e.g., X-Y axis or latitude and longitude).